Hilton and Marriott have raised concerns about artificial intelligence (AI) impacting their direct booking strategies, highlighting potential risks in recent filings. They warned that AI platforms, like ChatGPT, could divert customers toward online travel agencies (OTAs) and elevate distribution costs. This is significant as Hilton specifically acknowledged AI as a threat for the first time in its annual 10-K filing. The company noted that the consolidation of internet travel intermediaries and the emergence of major tech platforms could shift bookings away from direct channels, ultimately increasing hotel sales costs. As travel trends evolve, the influence of AI on consumer behavior is a critical consideration for hospitality brands. Both Hilton and Marriott are focusing on strategies to safeguard their direct booking initiatives against these emerging technological threats to maintain competitive advantage and reduce reliance on third-party services.
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